Staff Correspondent:
Foreign Affairs Adviser Md Touhid Hossain mentioned that to boost domestic cotton production, the government will soon recognise cotton as an agricultural product and introduce subsidies for its cultivation. A decision regarding this is expected within the next three months.
Bangladesh is taking steps to import cotton from the United States as a strategic move to deter the Trump administration from imposing tariffs on the country's exports, he said.
On Monday addressing a workshop, titled "The Potential and Importance of Cotton Cultivation in Bangladesh for Saving Foreign Currency", jointly organised by the Economic Reporters Forum (ERF) and the Bangladesh Cotton Association, Touhid highlighted the importance of this initiative.
"The US government has imposed tariffs on various countries since Donald Trump took office. While Bangladesh has already been exporting with tariffs in place, there is always uncertainty regarding additional tariffs. By importing cotton from the US and exporting garments made from it, we aim to create a situation where they hesitate to impose higher tariffs on us," he explained.
Additionally, the foreign adviser directed National Board of Revenue Member (Customs, Export and IT) Md Moazzem Hossain, who was present at the workshop, to take immediate steps for removing the existing 4% advance income tax on domestically produced cotton.
Addressing Bangladesh's transition from a Least Developed Country (LDC) in 2026, the foreign affairs adviser stated that the decision had been made long ago, and businesses should have prepared accordingly rather than seeking extensions.
"Even after LDC graduation, Bangladesh will enjoy duty-free access to the European Union for three more years. I believe our business community is waiting for this grace period to make necessary preparations, and I am confident they will be ready within that time frame," he added.
Regarding the Generalised Scheme of Preferences Plus (GSP+) scheme in the European Union, Touhid assured that Bangladesh would comply with all required conditions to secure the facility.
At the same event, NBR Member Moazzem mentioned that discussions were ongoing to extend bonded warehouse facilities to various business sectors. He suggested that these benefits could be started with cotton imports.
Additionally, he assured that he would present a proposal to withdraw the Advance Income Tax (AIT) on locally produced cotton to the relevant NBR officials.